Drinking coffee could soon become more expensive as the price of coffee on international commodity markets hit an all-time high.
On Tuesday, the price of Arabica beans, which make up the bulk of global production, topped $3.44 per 0.45 kg, a jump of more than 80 percent this year. The price of Robusta beans, on the other hand, hit a new record in September.
The surge in coffee prices comes as coffee traders expect yields to fall after the world’s two largest producers, Brazil and Vietnam, were hit by bad weather, and the drink’s popularity continues to grow.
One expert told the BBC that coffee companies are considering raising prices at the start of the new year. While in recent years major coffee producers have been able to absorb price increases to retain customers and maintain market share, that looks set to change soon, according to Vinh Nguyen, CEO of Tuan Loc Commodities.
The last record for coffee prices was set in 1977 after unusual snow destroyed plantations in Brazil.
“Concerns about Brazil’s coffee harvest in 2025 are the main drivers of this growth,” said Ole Hansen, Head of Commodity Strategy at Saxo Bank.
He said Brazil experienced its worst drought in 70 years during August and September, followed by heavy rains in October, raising fears that the crop could fail.
It is not only Brazilian coffee plantations, which mainly produce Arabica beans, that are affected by bad weather.
The supply of Robusta beans will also decrease after plantations in Vietnam, the largest producer of the species, also experienced drought and heavy rains.
Coffee is the second most traded commodity in the world by volume, right after oil, and its popularity is growing. For example, consumption in China has more than doubled in the last decade.
